Automotive augmented reality: Key market research findings
- Europe dominates the market geographically
- The entry-level segment accounts for a majority of the market’s revenue
- Key vendors – Hyundai Motor, BMW AG, Continental AG, Garmin, and Pioneer Electronics
Technavio’s market research analysts predict the global automotive augmented reality market to grow at a CAGR of around 18% between 2016 and 2020. The increasing electrification of automotive mechanics is the driving force behind growth in this market. Various governing bodies across the world have issued regulations to reduce vehicle emissions along with increasing fuel economy in an attempt to curb environmental pollution. Modern vehicles are being equipped with high-end electronics that are used in advanced technologies, such as automotive sensors, to control engine activities, collision avoidance systems, infotainment, connected systems, and drive-by-wire technologies. Europe lead the global automotive augmented reality market by occupying around 40% of the overall market space in 2015. The presence of key producers of motor vehicles and the flourishing automotive sector in the region are factors that will propel growth in the automotive augmented reality market in Europe during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the automotive augmented reality segments based on the vehicle type.
“The recent rise in the consumer adoption of infotainment systems is expected to drive growth in the market over the next four years. Intense competition in the mid-segment vehicles is forcing OEMs to introduce high-end infotainment systems in mass mid-segment vehicles such as hatchbacks and LCVs, which include pick-up trucks. Several OEMs and electronics suppliers in the automotive industry are actively invested in exploring means of cost reduction of these systems, enabling their integration in smaller cars and commercial vehicles,” says Siddarth Jaiswal, Lead Analyst, Automotive, Technavio Research.
In 2015, entry-level vehicles showed an augmented reality (AR) penetration of more than million vehicles to dominate the global automotive AR market. The entry-level segment comprises of OEMs and the aftermarket. Steady growth throughout the forecast period coupled and no noticeable self-cannibalism exhibited by the different sub-segments are factors that will fuel growth in the automotive augmented reality market for entry-level vehicles in the coming years.
The key vendors in the market include Hyundai Motor, BMW AG, Continental AG, Garmin, and Pioneer Electronics. Due to the presence of a number of internationally established vendors, this market appears to be highly fragmented. Since all major vendors have a considerable product portfolio and are aimed at gaining a better share of the market, the level of vendor competition is envisaged to be very high. The increasing demand for different vehicle types is expected to intensify the competition among suppliers in the coming years.
A more detailed analysis is available in the Technavio report, Global Automotive Augmented Reality Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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